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Joan wants to start an IRA that will have $250,000 in it when she retires in 21 years. How much should she invest annually in her IRA to do this if the interest is 16% compounded quarterly?

  • college -

    A = P(1+r/n)^nt
    250000 = P(1.04)^4*21
    P = 250000/1.04^84
    P = 9271.28

  • college -

    Solve the problem. Round to the nearest cent.

    Joan wants to have $250,000 when she retires in 27 years. How much should she invest annually in her annuity to do this if the interest is 7% compounded annually?

    A) $1861.10
    B) $3356.43
    C) $2672.15
    D) $937.86

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